After you get a life insurance quote the company will usually arrange to have a medical test and blood withdrawal done on you. This is to verify that the health factors you listed on your policy are indeed true.
Once a life insurance company approves and issues a policy on your life, you are still not in the clear. Just because they issued a policy doesn’t mean they can’t void the policy in the future. A voided policy can lose all of the premiums you paid and you will be left without the death benefit.
Can My Life Insurance Policy Be Voided?
The circumstances that lead to a voided policy are severe in nature and are almost always a result of your actions.
Lying on Your Application
You can’t expect to lie on your life insurance quote application and the company not catching it. If the life insurance provider finds any wrong information that would have influenced their decision to insure you, they can rescind the policy. In most states you usually get your premiums back if this happens. Otherwise they may adjust the policy premium amount and require you to pay it immediately.
Sadly, many people believe they can get a massive life insurance policy on their life before committing suicide in order to take care of their families after they are gone. Suicide does not always void a policy because regulations on this change from state to state. Some regulations may require the policy to be running for a certain number of years before suicide is covered; others may never provide a death benefit for suicide.
Either way it is important to know what your policy allows for by reading the fine print. (And if you are feeling this way, seek professional mental health care.)
Missing a Premium Payment
The easiest way for the average person to have a policy voided is to not pay the annual life insurance premium.
Life insurance companies don’t necessarily want you to lapse because they enjoy a nice consistent income from your payments. (Of course they would not mind if you had to reapply for a policy and end up with a higher premium amount.)
To combat forgetfulness and lost bills in the mail, almost every life insurance company out there will provide a 30 day grace period before terminating your life insurance policy. Even if it is close after 30 days they may accept payment as long as nothing has changed from a health perspective that would result in them wanting to charge you more on the policy.
If you are struggling to come up with the money to pay the annual premium make sure you call the life insurance company to explain. Some companies will set you up on a payment plan due to income hardship to allow you to keep the policy in force.
Final Thoughts on Voided Life Insurance Policies
Getting a life insurance quote is easy, but going through the steps to qualify can take a while. Don’t lose out on the important death benefit for your family by avoiding the issues above that can void your policy.